China bulls bet on limited gains

Traders are betting further upside will be limited in the iShares China Large Cap Fund.

More than 18,000 December 41 calls have traded in volume well above the strike's previous open interest of 8,940 today, according to optoinMONSTER systems. The big block of 14,500 was sold for the bid price of $0.67.

The calls could have been sold naked with an initial bearish bias. But it is more likely that they were traded against long shares in a covered call position , which would be bullish but only up to the strike sold. (See our Education section)

The FXI is up fractionally to $39.92 this morning. The exchange-traded fund has jumped from support at $36 in the last week. It is now at the highest levels since February.